ICICI Lombard Appeals Against Tax Demands Are Allowed by CESTAT, Contingent Liability Reduced

ICICI Lombard Appeals Against Tax Demands Are Allowed by CESTAT, Contingent Liability Reduced​

ICICI Lombard General Insurance Company Ltd has received favorable appeal orders from the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, confirming that its appeals against previous tax demands have been allowed in the company's favor.

The orders were received on June 9, 2026. These proceedings concerned claims and penalties related to service tax issues spanning multiple financial years.

The original appeals addressed significant demands raised by the authorities across different periods: FY2008-09 to FY2011-12, FY2013-14 & FY2014-15, and FY2011-12. The total demands faced by the company included penalties amounting to ₹ 1,095.68 Million for the first set of periods, and ₹ 1,186.88 Million for FY2011-12, including interest and penalty components.

Breakdown of Tax Proceedings​

The appeals focused on grounds such as short reversal of Cenvat Credit under the Finance Act 1994 pertaining to FY2008-09 to FY2011-12, FY2013-14 & FY2014-15, and denial of Cenvat credit on certain expenses for FY2011-12.

A detailed look at the financial implications of the original tax demand is provided below:


The company had disclosed these tax demands, including interest and penalty, as a contingent liability in its financial statements.

As a result of the CESTAT rulings, which confirmed that the appeals were allowed in favor of ICICI Lombard General Insurance Company Limited, the associated contingent liability for the company has been reduced commensurate with the amount of the demand set aside.

ICICIGI Stock Price Movement​

Shares of ICICI Lombard General Insurance Company Limited settled lower today, shedding 2.40% and closing at ₹1732.2. The stock traded within an intraday range of ₹1728 to ₹1790.